Today we announced record results in 2013 in enabling software companies to generate new revenue from unpaid software use. V.i. Labs data generated more than $300 million in new license revenue for customers in 2013, and we have achieved 500 percent revenue growth since 2010.
Our president and CEO, Joseph Noonan said, “We’ve proven that it’s more than just students and people in China using unpaid software. Well-established businesses continue to present a significant new revenue opportunity for software vendors worldwide. Trends like the growth in consumer electronics are driving the use of unlicensed software in unexpected companies. For example, CodeArmor® Intelligence data revealed that many mobile device manufacturers’ top suppliers used unpaid software last year. It is imperative for software vendors to be able to identify opportunities like these and generate new license revenue from them.”
V.i. Labs’ customers range from a number of billion dollar software vendors to smaller companies; offering PLM, EDA, CAD, CAE, CAM, BIM, security, desktop productivity, media design, and software development solutions. Our products and services enable them to gather actionable intelligence to convert the use of unpaid software into significant new revenue. CodeArmor is now shipped in nearly 600 products worldwide.
“CodeArmor is the gift that keeps on giving. There are so many companies that once we contact them and show them the data, they make an immediate compliance purchase,” said the senior compliance manager at a product development software vendor.
We also grew our V.i. Labs Data Service (VDS), an application that integrates with the CodeArmor Intelligence dashboard to automatically investigate and identify infringing business organizations based on the data collected. This unique database nearly doubled in 2013 and now provides customers with detailed information on 65,000 organizations that are using pirated or unlicensed applications in more than 200 countries. Software vendors use VDS to accelerate new customer conversions.
“We were skeptical about whether there would be actionable intelligence from unpaid use, but now that we see the data generated by CodeArmor, we love it – and so do our resellers who are acting on the leads we have generated for them,” said a senior sales manager at a CAM vendor.
In May, we delivered CodeArmor Control, a new solution that enables consumer software vendors to convert unpaid users or prevent its use. “We have had a long history of piracy on our consumer products, but knew there was no way to prevent it,” said the director of business development at a digital imaging software vendor. “CodeArmor Control was the first product we have seen that will let us automatically respond to piracy and help convert users to paying customers.”
In June, we announced CodeArmor Intelligence for SafeNet Sentinel, offering SafeNet customers a revenue generating alternative to reduce piracy. As with CodeArmor Intelligence for FlexNet Publisher, this new solution was developed in response to customer demand. The director of product development at a leading CAD vendor uses SafeNet Sentinel SuperPro keys, but knew that products were still susceptible to piracy and saw a lot of illegal use. “By using CodeArmor Intelligence we can still get value from our existing SafeNet investment, but now we are able to generate revenue and reduce piracy by turning infringers into customers.”
Throughout the year we led a series of panel discussions on license compliance and software piracy including its second panel in Boston (featuring speakers from Dassault Systèmes, BSA and Software Compliance Group), and the third annual online panel with SIIA and FAST. V.i. Labs was also invited to participate in a License Compliance roundtable hosted by PricewaterhouseCoopers in San Jose, CA in December. V.i. Labs’ Software Piracy Initiatives Forum on LinkedIn grew to 430 members representing compliance, legal, and sales leaders from software companies around the globe.
Data from a sample of CodeArmor Intelligence deployments in 2013 continued to prove fruitful in identifying global license compliance and software piracy trends:
- Customers uncovered more than $3 billion in potential new software license revenue, bringing the total identified since the introduction of CodeArmor Intelligence to more than $7 billion.
- The top 20 geographies for license misuse and piracy again included the United States, Korea, Germany, Russia, France, India, Spain, the United Kingdom, Canada, and Japan – all regions where license revenue recovery rates are high and software vendors have successfully expanded their customer base.